A landmark report is calling for a major shakeup of the superannuation industry after it was revealed members are losing billions in savings every year.

The Productivity Commission has described Australia’s superannuation system as an “unlucky lottery”, with useless duplicate accounts and unnecessary fees eroding retirement savings.

Underperforming funds have also been targeted in the new report.

The Commission has recommended sweeping reforms, including a system where a worker would choose a default account from a list of top-performing funds rather than being automatically placed into their employer’s chosen fund.

If changes are implemented, new workers could be up to $400,000 better off by the time they retire.